Key Takeaways
- Disney is slated to report fiscal third-quarter outcomes Wednesday morning, with analysts bullish on the media large’s inventory.
- Income and earnings are anticipated to rise year-over-year, and Disney stated final quarter it expects so as to add Disney+ subscribers on this quarter.
- Analysts have stated just lately that Disney ought to see strong demand for its theme parks and cruises, and that new movie releases and cruise ships might propel the inventory later this 12 months.
The Walt Disney Co. (DIS) is ready to report its outcomes for the third quarter of fiscal 2025 earlier than the market opens Wednesday, with analysts anticipating rising income and earnings and resilient demand for its experiences phase.
Analysts are broadly bullish on Disney, with six of the seven tracked by Seen Alpha calling the media and leisure large a “purchase,” in comparison with only one “maintain” ranking. The common worth goal of close to $136 represents upside of about 17% from Friday’s shut, and would mark Disney’s highest worth since April 2022.
Disney is projected to report $23.75 billion in income and adjusted earnings per share of $1.48, every up from the identical time a 12 months in the past, per estimates compiled by Seen Alpha.
Disney topped estimates final quarter, reported a shock enhance in Disney+ subscribers and predicted one other bump in Q3, and introduced plans to construct a theme park in Abu Dhabi, the capital of the United Arab Emirates. The corporate lifted its adjusted EPS projection to $5.75, up 16% from fiscal 2024, after beforehand forecasting a excessive single-digit enhance.
Analysts Anticipate Strong Quarter With New Cruise Ships, ESPN Streamer On the Manner
UBS analysts just lately lifted their worth goal to $138 from $120 beforehand, and stated they anticipate the quarter to point out “resilient demand” throughout Disney’s theme parks and bettering streaming profitability forward of Disney-owned ESPN’s launch of a brand new streaming service later this 12 months.
“We stay constructive on the outlook for [the 2026 fiscal year] given underlying developments on the parks, new cruise capability, sturdy content material pipeline and inflecting margins in [direct-to-consumer] with upside from full management of Hulu,” the UBS analysts wrote.
Jefferies analysts just lately wrote that it is a “key quarter” for Disney to determine its “narrative” for the subsequent two years. The analysts stated they nonetheless really feel assured about their current improve to “purchase” and $144 worth goal, given the corporate’s “favorable catalyst path” of upcoming movie and streaming releases, and the launch of its two new cruise ships by the tip of the calendar 12 months.
